22 Jul How Life Insurance Can Help with Loans for Policyholders
How Life Insurance Can Help with Loans for Policyholders
Life insurance policies, particularly those with a cash value component, offer unique benefits that can help policyholders secure loans. At The Policy Shop, we explain how leveraging life insurance can provide financial flexibility and support.
Life Insurance–Accessing Cash Value
Policies such as whole life and indexed universal life (IUL) insurance accumulate cash value over time. This cash value can be accessed through policy loans, providing a convenient and low-interest way to borrow money. Learn more about How IULs Work and their benefits.
Life Insurance-Low- Interest Loans
Policy loans typically offer lower interest rates compared to traditional loans, making them an attractive option for policyholders. Additionally, these loans do not require a credit check, and the loan amount is not considered taxable income.
Life Insurance-Flexible Repayment
Repaying a policy loan is flexible. There are no fixed repayment schedules, and you can choose to repay the loan at your convenience. However, it’s important to manage these loans carefully, as unpaid loans and interest can reduce the death benefit.
Life Insurance-Maintaining Coverage
Taking a loan against your policy does not affect your coverage. The death benefit remains in place, ensuring that your loved ones are protected even if you have an outstanding loan.
Life insurance policy loans offer a flexible and low-interest way to access funds when needed. To learn more about how life insurance can support your financial needs, visit The Policy Shop today.
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